Corebridge Financial Announces Pricing of Secondary Offering of Common Stock by AIG

Rhea-AI Summary

Corebridge Financial (NYSE: CRBG) announced the pricing of a secondary offering by American International Group (AIG) at $31.20 per share. AIG is offering 30 million existing shares, representing approximately $936 million in gross proceeds, with an option for underwriters to purchase an additional 4.5 million shares within 30 days. The offering, expected to close on November 12, 2024, represents a portion of AIG's approximately 568 million total outstanding shares. J.P. Morgan and Morgan Stanley are serving as underwriters, with all net proceeds going to AIG.

Positive

• None.

Negative

• No direct proceeds will benefit Corebridge Financial as all net proceeds go to AIG
• The secondary offering may create selling pressure on CRBG stock

Insights

Financial Analyst

This secondary offering represents a significant move by AIG to further reduce its stake in Corebridge Financial, offering $936 million worth of shares at $31.20 per share. The pricing shows a slight discount to recent market prices, which is typical for large block sales. With AIG selling 30 million shares out of 568 million total outstanding shares (5.3% of total shares), this transaction will increase CRBG's public float and potentially improve trading liquidity.

The additional 4.5 million share option granted to underwriters could bring total proceeds to over $1.07 billion if exercised. While this sale doesn't directly affect Corebridge's operations or balance sheet since proceeds go to AIG, the increased float could attract more institutional investors and potentially reduce stock price volatility. The involvement of premier underwriters J.P. Morgan and Morgan Stanley suggests strong institutional interest in the offering.

HOUSTON--(BUSINESS WIRE)-- Corebridge Financial, Inc. (NYSE: CRBG) today announced that the previously announced secondary offering by American International Group, Inc. (NYSE: AIG) of common stock of Corebridge Financial has priced at $31.20 per share. The offering is expected to close on November 12, 2024, subject to customary closing conditions.

AIG, as the selling stockholder, has offered 30 million existing shares of common stock (out of approximately 568 million total shares of common stock outstanding) of Corebridge Financial, corresponding to approximately $936 million of gross proceeds. AIG has also granted a 30-day option to the underwriters to purchase up to an additional 4.5 million shares. All of the net proceeds from the offering will go to AIG.

J.P. Morgan and Morgan Stanley are acting as the underwriters for the offering. The underwriters may offer the shares of common stock from time to time for sale in one or more transactions on the NYSE, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices.

The offering of common stock is being made only by means of a prospectus and an accompanying prospectus supplement. Copies of the prospectus and accompanying prospectus supplement relating to the offering may be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by email at prospectus-eq_fi@jpmorganchase.com and postsalemanualrequests@broadridge.com, or Morgan Stanley & Co. LLC via mail at 180 Varick Street, 2nd Floor, New York, NY 10014.

A registration statement relating to these securities was filed with the U.S. Securities and Exchange Commission (“SEC”) on November 6, 2023, and became effective automatically. The registration statement may be obtained free of charge at the SEC’s website at www.sec.gov (EDGAR/Company Filings) under “Corebridge Financial, Inc.” This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

About Corebridge Financial

Corebridge Financial, Inc. makes it possible for more people to take action in their financial lives. With more than $410 billion in assets under management and administration as of September 30, 2024, Corebridge Financial is one of the largest providers of retirement solutions and insurance products in the United States. We proudly partner with financial professionals and institutions to help individuals plan, save for and achieve secure financial futures.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107368739/en/

Işıl Müderrisoğlu (Investors): investorrelations@corebridgefinancial.com

Matt Ward (Media): media.contact@corebridgefinancial.com

Source: Corebridge Financial

FAQ

What is the price per share for Corebridge Financial's (CRBG) secondary offering?

The secondary offering of Corebridge Financial (CRBG) stock has been priced at $31.20 per share.

How many shares is AIG selling in the Corebridge Financial (CRBG) secondary offering?

AIG is selling 30 million existing shares of Corebridge Financial (CRBG), with an option for underwriters to purchase an additional 4.5 million shares.

What is the total value of Corebridge Financial's (CRBG) secondary offering?

The secondary offering amounts to approximately $936 million in gross proceeds from the sale of 30 million shares.

When will Corebridge Financial's (CRBG) secondary offering close?

The secondary offering is expected to close on November 12, 2024, subject to customary closing conditions.